Though it may have started with the intention of selling a duplicate product at a low price, but at present piracy has become a threat. It has spread its fangs to engulf almost the entire IT sphere – from software to ink cartridges to toners to mobile phones to printers to CDs and DVDs – and the list goes on. Today, the market is inundated with counterfeit products, so much so that even consumers who are willing and ready to pay for original products for best results are trapped in this dubious cobweb. The innocent consumers become easy victims as the grey products have become easily available in the market. Piracy continues to threaten the global economy and stifle IT innovation, job creation, and economic growth. Piracy and counterfeit products have assumed alarming proportions and pose a serious economic threat to enterprises in India and globally, as it has led to massive competitive disadvantage. This menace is growing in scope and magnitude and leading to an unfair playing field. Now, the counterfeit products not only adorn the shelves of physical stores but are also available online.
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Nitin Hiranandani, Director - printing systems, HP Personal & Printing Systems, HP India | Sumeet Khanna, Director of Genuine Software Initiative, Microsoft India | Vipin Tuteja, Executive Director, Technology, Channels & International Business, Xerox India | S. M. Ramprasad, DGM – Consumer Products Group, Epson India |
HP is keenly addressing the perils posed by fake products. "HP vigorously defends its brand and the intellectual property for original HP supplies by engaging in industry-leading anti-counterfeiting practices," says, Nitin Hiranandani, Director - printing systems, HP Personal & Printing Systems, HP India.
Microsoft is also involved in addressing the risks posed by non-genuine software, which can have a devastating effect on the livelihoods of consumers, productivity of small businesses, and economies of emerging nations.
“Microsoft is a responsible company trying to address the problem of piracy and counterfeit products. We are working to educate partners and consumers about the risks of getting software from suspect sources. We work closely with resellers to educate and incentivize them, encourage them to sell genuine software. We are also investigating the sources of these spams and counterfeiting operations and are doing everything in our power to stop this kind of activity,” says, Sumeet Khanna, Director of Genuine Software Initiative, Microsoft India.
It is important for consumers to purchase products from the manufacturer brand and from authorized resellers. Authorized resellers provide warranty on the product quality, better life of the product and customer satisfaction over a longer period of time. After-sales service becomes crucial, as manufacturer’s and authorized resellers adhere to warranty norms. In India today, the high-end market – be it in enterprise or SMBs – are focussed on the purchase of their technology products and solutions either from the vendor directly or from SIs and solution providers that they source their ICT requirement. The sales and service element are included as part of their annual service contract. However, what is important is that they abstain from procuring technology products from unauthorized outlets as they adhere to ICT guidelines. Non- conformation to these could lead them to trouble during auditing process.
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| Nasir Mohd, Sr Manager - Marketing, Laser Production Division, CSP Group, Canon India |
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| Anwar Shirpurwala, Executive Director, MAIT |
On the contrary, a majority of consumers at home and SOHO approach the unorganized sector for counterfeit alternatives. Here, there is a challenge as the segment is huge and widespread across the country. In this category, counterfeit products are a major problem for all vendors. It affects the consumer’s level of satisfaction on the product and degrades brand value and commitment. Most companies today are looking at various marketing tools – advertising and promotions to create awareness and the pull towards authentic product. However, a lot has to be achieved in the segment.
Consumers need to be aware of the benefits of original products value and brand proposition, check the trademark, warranty, etc and ensure that they are purchasing a genuine product from an authorized reseller,” says, Vipin Tuteja, Executive Director, Technology, Channels & International Business, Xerox India.
MAIT, had come out with a Handbook titled “Ensuring your new PC is truly new and genuine” a couple of years back, which advises consumers to check on certain facts while buying a product.
Anwar Shirpurwala, Executive Director MAIT, points out, “Any sort of counterfeiting is a menace and can cripple the legitimate industry. Resellers are an important part of the IT hardware value chain and help in closing the gap on last mile connectivity with end consumers. Resellers are advised to stay away from counterfeiting as it is a criminal offense and can lead to serious consequences,”
Trouble dealing with Counterfeit
More than 6,000 refilled Epson fake cartridges of different printers were confiscated recently in Mumbai. Previously in October 2012, the Police in Chennai raided the premises of a well- established IT dealer indulging in counterfeiting.
“Also earlier this year, a series of Caution Notice advertisements had been issued by Epson warning those dealing in the business of counterfeit cartridges. Epson India is also taking active steps in educating customers of the consequences of using fake cartridges. The usage of fake printer cartridges may result in ink leaks, blocked print heads, erratic printer performance, ultimately causing serious printer damage. Epson is constantly striving to curb this malpractice,” said S. M. Ramprasad, DGM – Consumer Products Group, Epson India. “Since it is hard to pinpoint where exactly the counterfeit products are originally made, it becomes a challenge to locate who is responsible for exporting the product. Also, there will always be a few black sheep in the market which can spoil the harmony. But still with able support from the partner community and law-enforcement authorities, we can curb this menace,” he adds.
The entire industry ecosystem is the victim of counterfeiting in one way or the other. Since such sales are not genuine, at times consumers are left stranded with no one to hear their complaints. Consumers feel cheated and lose faith in the brand. Retailers and Manufacturers lose credibility and the brand image among consumers which directly hits their market share and revenues.
“An effective mechanism to tackle counterfeits is the need of the hour. A coordinated and honest effort between industry, investigating agencies, resellers and government officials will surely shake and strangle the illegal counterfeit market, which is difficult to contain under the current ineffective framework,” asserts Anwar of MAIT.
“Counterfeiting is difficult to stop in India because of its demography and the kind of business model most of the IT traders have. Counterfeiting starts when the empty cartridges are taken by the third party and a duplicate is manufactured which looks similar to the original product.
Tracking these products is extremely difficult at the current stage,” says Nasir Mohd, Senior Manager – Marketing, Laser Production Division, CSP Group, Canon. He adds, “We are trying to spread awareness through editorials as how to identify an original product. Also, we are advertising to educate the customers by letting them know the disadvantages of using counterfeit goods and inversely what would be the usefulness of using a genuine product. Now, since the customer finds it difficult to identify a fake product, we are doing barcoding on the products and using logos.”
The worst victims, of course, are the customers as they get cheated during the process of purchase and it also holds up their important work, eventually leading to a financial loss. The retailers too, are victims of counterfeiting as they lose their customers and their reputation in the market. Each of these sectors falls prey to counterfeiters. The widespread permeation of counterfeits is a grave menace to the customers as well as channel partners. Last but not the least, counterfeit products also affect the company’s performance.
moumita@varindia.com
